Nutrisystem 2007 Annual Report Download - page 29

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December 31,
2007 2006 2005 2004 2003
Balance Sheet Data:
Cash, cash equivalents and marketable securities ...... $ 42,448 $ 80,278 $ 44,768 $ 4,125 $ 2,684
Working capital ................................ 103,349 134,049 65,470 5,100 5,664
Total assets .................................... 198,560 197,867 107,246 17,825 13,688
Non-current liabilities ........................... 1,006 831 254 272 2
Stockholders’ equity ............................. 141,502 145,302 78,966 12,175 9,291
(a) In the fourth quarter of 2007, we committed to a plan to sell the subsidiary Slim and Tone LLC (“Slim and
Tone”). This subsidiary has been treated as a discontinued operation. Accordingly, the operating results of
this discontinued operation have been presented separately from continuing operations and are included in
loss on discontinued operation, net of income tax in the accompanying consolidated statements of
operations for all periods presented. In 2007, we recorded a pre-tax loss on disposal of $1,256 consisting of
an impairment of goodwill and intangibles of $1,156 and a pre-tax loss of $100. See discussion relating
thereto in Note 10 of the Notes to the Consolidated Financial Statements.
(b) In the second quarter of 2003, management determined that recognition of the benefits related to deferred
tax assets was more likely than not based on an analysis of the cumulative level of pretax profits over the
prior three years, projected levels of profits, schedule of reversal of temporary differences, and tax planning
strategies. As a result, the valuation allowance was eliminated, a deferred tax asset and liability were
recorded on the consolidated balance sheet and an income tax benefit was recorded in the consolidated
statement of operations.
The Company has not paid any dividends since its inception. Our Board of Directors has considered the
declaration of a dividend and expects to give it further consideration in the future.
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